Is it necessary to re-evaluate insurance policies?
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Purchasing an insurance policy is the first step towards getting insured. If you thinkyou’ve done enough. No you haven’t. An insurance policy grows and evolves with you as you move through life. What you purchase today may not be as relevant in 10 years time and that’s why it’s crucial that you revisit your policy from time to time.
Re-evaluating your insurance policy is a necessity and especially vital when you experience significant life events like marriage or having a child. When married, review both your and your spouse's policy coverage. This is crucial step, especially if you are the sole breadwinner of the family. Ensuring that your policy fits your family needs will greatly ease their burden should you require sudden hospitalization or death which could leave your spouse and family in financial limbo and unable to pay the bills.
Keep monthly expenses in mind as well as your income and that of your spouse when choosing the policy you want. And when you have children, review it again. This is because protecting your child’s future or to save for their education fund is one of the very first consideration a new parent should make, as it is one way to make sure your child is financially protected if their parents can’t be there for them.
“It is a good idea to speak with your insurance agent every three years about your life insurance policy and your changing needs. This way you'll always be prepared should the worst happen, and your loved ones be left behind without the financial means to support themselves,” said Rangam Bir, CEO of Allianz Life Insurance.